Global Beef Industry Outlook ‘Mixed’ Says Report

Apr 18, 2013

Rabobank Releases Its Beef Industry Q1 2013 Report

Rabobank’s Food & Agribusiness Research and Advisory released its global beef industry Q1 2013 report. The report says the outlook is mixed, but will likely remain constrained. The report also says the horsemeat scandal failed to impact short-term EU demand.

Rabobank’s global beef industry outlook is deemed to be mixed, noting that U.S. beef prices were a disappointment in Q1, which can partially be attributed to a strong U.S. dollar and trade disputes with Russia - which resulted in a 12% decline in exports.

Coupled with a decline in exports, beef sales have also been weak - noting that levels of disposable income. In addition to the U.S., Rabobank’s beef outlooks also looks at Latin America, Australia and New Zealand. In Latin America (Brazil, Uruguay and Paraguay) are expected to deliver reasonable margins. In Australia and New Zealand, prices have declined due to poor weather conditions, which has led to increased throughput at the producer level. In conclusion, as disposable income slows and threats of inflation - especially in North America and Europe, create additional pressures for beef companies to pass on cattle prices onto the consumer.

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